Allianz Nigeria restates readiness to settle unrests' claims

By Rosemary Onuoha

Nigeria Social Insurance Trust Fund, NSITF, has called for a review of the laws guiding investment of insurance and pension funds to ameliorate the impact of declining yields on bonds, treasury bills and other fixed income instrument.

From an average of 15 percent in early 2019, yields on 364-Days treasury bills dropped to 0.3 per cent at the auction conducted by the Central Bank of Nigeria (CBN) last week.

This development according to the Chairman of the Nigeria Social Insurance Trust Fund, NSITF, Mr Austin Enajemo-Isire creates an urgent need for a review of the legislations guiding insurance and pension funds so as to ensure access to other investment outlets.

Speaking at the 2020 conference of the National Association of Insurance and Pension Correspondents, NAIPCO, Enajemo-Isire, said: “This year has witnessed unprecedented crash in yields and interest rates payable in the bond, capital and money market. Bond rates have fallen to as low as 2.5 percent, depending on the tenor.

“NTB is currently an unattractive short term investment window with a rate as low as 0.5 percent. Stock market has its share of the economic down turn, just as the money market operations is not an exception.

“How can contributors, policy holders and shareholders maximize their wealth and grow the economy under such situation? There is urgent need to consider alternative strategies to retool the economy for survival and growth.

“In furtherance to the foregoing, the current restrictive nature of insurance and pension funds investment outlets calls for review of the legislations guiding investment of insurance and pension fund.

“The yelling and plea from the Organised Private sector of Nigeria (OPSN) to create more access to investible funds deserves attention.”

Vanguard News Nigeria

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.